After taking a break, market is racing to next target which we mentioned last week. Are you feeling left out of this BULL rally? Is this start of something BIG!!! Many questions and doubts.... Let's see if we can find out some answers...

Not much has changed in below chart from last week -

Nifty is well above MA(100) as well as MA(100) remains above MA(200) suggesting bullish trend for now

McClellan Index is inching higher as well as remains above EMA(59) also suggesting slightly more stocks are advancing than declining

Nifty has clearly broken out of consolidation and continuing the trend for now.

Weekly chart below is also displaying that market is on its way to reach its next goal of 6800 level.

When we see market at All Time High and all news media, radio shows, newspaper talking about it, all we can think of is missing the rally and want to get in at any cost in anticipation of NOT loosing further upside. BUT that is indeed the time to remain calm and wait for the right opportunity.

Lets talk about some scenarios:

Market continues its current path and BJP comes into power - This scenario will be extremely BULLISH and we might see the start of NEXT extreme BULL market, so should we get in now!!! TOO much risk ahead of elections especially if you are NOT already in the market. Don't worry of loosing BULL rally, at some point this market will correct and that will be our opportunity to get in, hence DO NOT chase this market.

Market continues its current path and we get a coalition government - Very confusing period which will weigh on the market and drag it down in zig-zag manner.

Hence it is wise to have patience wait for RIGHT opportunity.

What does it mean for our Investments?

Mutual Funds - If invested in equities then stay put until we see signs of danger. If in liquid funds then have patience and wait for right opportunity. If in debt/bond funds then remain invested, however DO NOT take a loss more than 8-10%.

Stocks - ONLY invest in strong patterns with good earnings and DO NOT forget to have STOP LIMIT in place.